Creditors of African American news and culture magazine Ebony want a federal bankruptcy court in Texas to force the company into Chapter 7 bankruptcy, Law360 reported.
Texas-based CVG Group owns the publication, which it bought along with the publication Jet from Johnson Publishing in 2016.
The has not had a print edition since May 2019.
Earlier this month, the magazine’s board announced that CEO Willard Jackson had been removed amid an investigation about personal loans.
Jacob Walthour is Ebony’s newly elected board chairman. Walthour is co-founder of New Jersey-based Blueprint Capital Advisors, which holds Ebony’s senior debt, the Chicago Tribune reported.
Jackson is a partner in CVG Group. He said in an interview that he’s being hit with a smear campaign amid what he calls a hostile takeover move by Blueprint.
The magazine has defaulted on $10 million in loans, the Chicago Tribune reported.